The majority of small firms are happy with changes to the national minimum wage, it has been claimed.
According to Simon Braiult, spokesperson for the Federation of Small Businesses, SMEs are keen on the system as it stops firms from having to face unfair competition.
He said: "We, as an organisation, are in favour of the minimum wage, because it basically means that the minority of dishonest employers are not able to undercut the vast majority, who pay fairly."
Mr Braiult also pointed out that the minimum wage does not affect the number of people small firms employ.
There are a number of other factors, such as rising fuel prices, that have a bigger impact on recruitment, he added.
Recently, the government announced that the minimum wage for those over 22 will increase from £5.52 to £5.73 in October of this year.
Those aged 18 to 21 will see their pay increase from £4.60 to £4.77 at the same time.
